Reviving the Leather Industry in the East African Community (EAC) Region

The East African Community (EAC) region is home to over 500 million livestock, making the leather industry a vital economic sector. In Uganda alone, the sector contributes at least 1.5% to the country’s GDP through the export of hides and skins. Across the region, the industry generates over 450 billion shillings annually, while in Tanzania, it is the largest source of employment, creating jobs for thousands of citizens.

For decades, leather has been an essential part of trade, employment, and industrial growth in the region. However, recent struggles have put the sector at risk, reducing its contribution to national economies and limiting job opportunities.

Despite its potential, the leather sector in the EAC region is facing several critical challenges. These include:

Limited Value Addition: Many countries continue to export raw hides and skins, missing out on the higher revenue that comes with processing and finishing leather products.

Inadequate Infrastructure: The lack of modern tanneries and leather-processing facilities has hindered industrial growth.

Low-Quality Products: Without proper investment in leather processing technology, the quality of locally produced leather remains low, making it difficult to compete in global markets.

Weak Regional Collaboration: There is a lack of coordinated policies and investment strategies to support the industry across EAC member states.

Stakeholders Seek Solutions to Revive the Sector

Due to these challenges, stakeholders from across the region have come together to discuss the way forward. A high-level meeting was held today at Fairway Hotel in Kampala, bringing together policymakers, industry leaders, and private sector representatives.

Speaking at the event, Jean Baptiste from the EAC Secretariat highlighted the lack of knowledge in value addition as a key factor limiting the industry’s growth.

“Our biggest challenge is the low level of knowledge in leather processing. Without value addition, we continue to export raw hides and skins at low prices while importing finished leather products at high costs. This must change.”

He further emphasized that inadequate infrastructure has led to the continued exportation of unprocessed raw materials, reducing the sector’s overall profitability.

“Without modern processing facilities, we cannot maximize the potential of our leather industry. Investment in infrastructure is critical.”

Calls for Regional Collaboration and Investment

During the discussions, Jimmy Odhiambo, Chairman of the Leather Platform from Kenya, stressed the need for greater regional cooperation and a supportive business environment to attract investment in the leather sector.

“For the industry to recover, we must work together as a region. Strengthening collaboration, improving policies, and investing in value addition will be key to reviving the leather sector.”

Additionally, Simon Kaheru from the East African Business Council (EABC) pointed out that the leather sector directly employs over 500,000 people in the region. Uganda alone earns over $1.5 billion annually from the sector, yet low product quality remains a major issue.

“This industry is vital for job creation and economic growth. However, our locally produced leather must meet international standards to compete effectively. That is why this meeting is so important.”

The Way Forward

To revive the leather industry, stakeholders at the meeting proposed several key solutions:

1. Development of Leather Tanneries for SMEs

Establish modern tanneries to process hides and skins locally, ensuring higher value retention.

Provide financial and technical support to small and medium-sized enterprises (SMEs) involved in leather production.

2. Increased Investment in Infrastructure

Build state-of-the-art leather processing facilities to support both local and regional demand.

Improve transport and supply chain networks for leather raw materials and finished products.

3. Strengthening Public-Private Partnerships

Encourage private sector involvement in the modernization of the leather industry.

Develop policies that support manufacturers and attract investors in the sector.

4. Enhancing Regional Collaboration

Implement a unified EAC leather strategy to boost competitiveness and market access.

Promote skills training and technology transfer to improve product quality and sustainability.

Conclusion

The leather industry is a major economic asset for the EAC region, with the potential to generate billions in revenue and create thousands of jobs. However, challenges in value addition, infrastructure, and quality control must be addressed urgently.

With stronger regional collaboration, investment in processing facilities, and better policies, the sector can be revitalized to drive economic growth and industrial development.

The discussions at Fairway Hotel meeting mark an important step towards finding lasting solutions for a thriving leather industry in East Africa. The question remains: will governments and investors take the necessary action to secure the future of this critical sector?